Taxation is a vital means by which companies contribute to societies around the world. As business moves beyond borders, governments must ensure that taxation is transparent and non-discriminatory so that the benefits of open trade and investment flow to all.
As a key lever in national governments’ toolkits, taxation can often prove difficult to coordinate between different countries across the globe. International coordination, however, is essential if companies are going to invest internationally and participate in world trade.
Uncoordinated unilateral or bilateral actions by governments can lead to increased risks of double taxation—where companies are taxed more than once on the same earnings—unfair competition and greater uncertainty over the tax consequences of cross-border transactions in a way that impede and distort international trade and investment.
If unaddressed, double taxation especially can make it too expensive for international business to operate despite the best efforts of individual governments.
ICC promotes transparent and non-discriminatory treatment of foreign investment and earnings that eliminates tax obstacles to cross-border business transactions, collaborating with public and private sector stakeholders.
ICC also works with the United Nations and the Organization for Economic Cooperation and Development (OECD) as they seek to develop international taxation standards—including in the context of the OECD’s Base Erosion and Profit Shifting initiative.